HAP Leaving Health Insurance Marketplace, More Than 9,000 People Affected

The gridlock in Washington D.C. around the topic of healthcare is having real world implications.

Detroit-based Health Alliance Plan announced today that they’re withdrawing from the Health Insurance Marketplace, often referred to as Obamacare.

Specifically called out was the uncertainty the federal government will continue offering subsidies to fund reduced prices for those who currently qualify.

The decision to reduce HAP’s 2018 individual plan offerings was based on a variety of factors, including the many uncertainties related to premium stabilization programs, enforcement of the individual mandate and not knowing whether the federal government will continue to fund cost-sharing reductions (CSRs).

According to the company, individual members will have the option to purchase off-exchange plans directly from HAP.

9,100 Health Alliance Plan members, or about 1.4 percent of HAP’s current membership of 650,000, will be impacted.

“Market volatility and uncertainties have made it difficult for insurers to effectively plan for and provide affordable individual health plans,” said Terri Kline, HAP president and CEO. “We believe our decision is in the best interest of all of our members. As a nonprofit health plan with the mission of enhancing the health and well-being of the lives we touch, we need to be responsible with our members’ health care dollars. We owe it to them to offer products that are sustainable and that create value for them.”

These changes do not affect those who have employer-based (small and large group) insurance or those who are enrolled in Medicare, Medicaid, or self-funded plans.